(a) Define the term equivalent production and state when the principle is used. (4 marks)

(b) During May 20X1, M Wurzel & Co. Limited’s output was 4,000 finished items plus 600 partly finished items. There was no work in progress on 1 May 20X1.

Calculate for the month of May 20X1:
(i ) the total equivalent production for each cost element;
(ii ) the cost per complete unit;
(iii ) the value of the work in progress.

Transcribed Image Text:

Materials Total cost () 8,172 Labour 7,120 Overbeads Total 5,196 20,488 WIP degree of completion % 90 75 55